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<br /> t <br /> <br /> <br /> <br /> <br /> To: Curtis Tyler, Council Member <br /> From: Harry A. Takahashi, Finance DirectorA-1-1 <br /> Subject: General Obligation Bonds <br /> Bill 209, Draft 3 <br /> <br /> You have submitted the following for information. <br /> How are bonds issued? <br /> How are bond ratings determined? <br /> How will additional debt service be paid? <br /> Request for the latest Statement of Bonded Indebtedness. <br /> <br /> How are bonds issued? <br /> Chapter 47, Hawaii Revised Statutes, provides each county with the <br /> power and authority to issue general obligation bonds. These bonds are issued <br /> by competitive sale or negotiated. <br /> <br /> How are bond ratings determined? <br /> Bond ratings are prepared by both Moody's Investment Service and <br /> Standard and Poor's. We have attached copies of the ratings of the last sale in <br /> 1996. Please note that both rating services rated our bonds at A. <br /> <br /> How would debt service be paid? <br /> When Council authorizes a bond issuance, they are pledging the full faith <br /> and credit of the County to the payment of the principal of and interest on the <br /> bonds. The principal and interest payments shall be the first charge on the <br /> General Fund of the County. After payment of the debt service on our bonds, the <br /> balance of expenditures are limited to the remaining available resources. <br /> Statement of Indebtedness <br /> We have also enclosed the latest Statement of Funded Debt, dated July 1, <br /> 1998. <br /> <br /> We apologize not being able to attend the public hearing, but, with the Holiday <br /> schedule we are shortstaffed and we were not aware of this public hearing. <br /> Should you have any further questions, please contact your staff as she may be <br /> able to conduct the research of the referenced sources. <br />